Overview
Nebraska uses a progressive income tax system with its own Form W-4N. The state recently reduced its tax rates as part of ongoing tax reform. Nebraska also has provisions for nonresident employees and a small employer threshold.
State Income Tax (SIT)
Nebraska’s progressive income tax uses the state’s percentage method with brackets that vary by filing status. For 2026, each withholding allowance is worth $2,440 and the supplemental rate is 3.5%. Employees complete Form W-4N with their filing status and total allowances. Nonresident employees may need to complete Form 9N for multi-state withholding.
| Tax Structure | Progressive with brackets |
| State Withholding Form | Form W-4N |
| Filing Statuses | S, M |
| Allowance Value | $2,440 per allowance |
| Supplemental Rate | 3.5% |
Supplemental Wages
Nebraska supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 3.5%.
Employer State Unemployment Tax (SUTA)
Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.25%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 1.25% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
Nebraska does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to:
Official reference: Nebraska Department of Revenue
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